Leaderboard2

Teaching Money Skills – by Ellie Kay

0

One is never too young to learn about finance…

 

 

 

By learning basic money skills, our children can grow into adults who have less stress and stronger marriages.  The most effective ways to teach these skills are through an allowance, chores and kids’ budgets

 

Role playing in children generally helps build a solid financial acumen / Pix: GetPocketBook.com

 

 

 

 

Allowance

 

 

Inculcating a good savings habit should ideally begin from a young age / Pix: The Star Online
Inculcating a good savings habit should ideally begin from a young age / Pix: The Star Online

 

 

An allowance is a wonderful teaching tool.  When kids learn about money while they’re still at home, they have the freedom to fail in a safe environment.  If they fail, their parents are there to help train them.  A good age to start an allowance is around 7 years old, depending on the child’s maturity.

 

 

 

 

Chores

 

 

Keep your child busy with basic life-skill chores that will benefit their future / Pix: KwikNews.my
Keep your child busy with basic life-skill chores that will benefit their future / Pix: KwikNews.my

 

 

Your children should have daily chores they perform for no pay.  This is the foundation of a good work ethic that will help them throughout life.  The work also needs to be age appropriate. Even 3-year-old children can help set a table, carry dishes to the sink and pick up their toys and clothes.  By the time they’re 6, they can make their bed with help and put away clean clothes. Children between 7 and 12 learn how to clean their rooms by themselves, vacuum, dust, take out the rubbish, clean dishes, sweep the floor and water the plants in the garden. Teenagers should know how to do everything I’ve mentioned so far without supervision.  They should also know how to work for others and participate in volunteer work.

 

 

 

 

Kids’ budgets

 

 

Learning proper budgeting skills is key to developing good financial knowledge / Pix: MCUL.com
Learning proper budgeting skills is key to developing good financial knowledge / Pix: MCUL.com

 

 

The concept is simple and fun:  You set and pay the budget – but your children keep any money they don’t spend. While eating out, set a fair amount for your children to spend.  They may choose to drink water or skip dessert in order to come in under budget and keep the extra money. The next time you go to the movies, zoo or theme parks, set a budget for your child.  When the money runs out – it’s gone.  They will learn how quickly money can be spent if they are not careful.

 

 

Millennial children represent our hopes and dreams / Pix: 700childrens.nationwidechildrens.org
Millennial children represent our hopes and dreams / Pix: 700childrens.nationwidechildrens.org

 

 

 

 

This article was published with permission from Focus on the Family Malaysia. For more information, please contact:

 

 

FOTFM (1)

 

 

Focus on the Family Malaysia celebrates 20 years of helping families thrive in 2017. Find out more at http://family.org.my/20years

 

 

FocusMalaysia-1